Professional indemnity insurance is a common insurance product held by many services organisations in Australia. The risk that the organisation might provide poor advice or an improper service is real. Since we can all make mistakes, it is essential that you are covered in the event that a customer suffers loss or damage.
Whether you or your employees provides advisory, consultancy, analysis, opinion services or the like, this will usually require special expertise and knowledge that could lead to an outcome that is not suitable for the client. Whilst you might take all steps to know your client and their circumstances, often little oversights can cause the client to take steps that lead to their detriment.
In particular, pharmacists are constantly giving advice to customers about pharmaceutical drugs to help them stay healthy and feel better. There is always a risk that an incorrect product might be prescribed because of miscommunication, incorrect facts or a simple oversight of a side-effect.
To help you understand more about professional indemnity insurance, the following information will help to clear matters for your peace of mind.
How Does Indemnity Insurance Work?
Professional indemnity insurance providers coverage in the event that you are negligent in your professional work or engage in some sorts of malpractice. It can help to provide funds to cover legal costs and damages ordered as a result of acts, omissions and errors.
Although you might have strong controls in place to mitigate risks, there is always a likelihood that an error might occur in day-to-day practice. No matter how big or small the error, the person affected does have rights of recourse against the individual or the organisation. To ensure that you or your business does not suffer financially, insurance adds an extra layer of defence.
Typically, the insurance company will assess the claim and determine the quantum of damage and liability. The Insured party will have to cooperate in this instance so that the insurance company can make an informed decision. If successful, a payout will be made to cover some of the costs.
Who Needs Professional Indemnity Insurance?
We recommend that all service organisations consider professional indemnity insurance. We can help you understand your requirements and provide you with an overview of the coverage you are likely to receive.
Since there is a growing number of risks facing organisations, it is important that you invest in insurance to provide access to funds should matters get worse. Especially if you are seen to be an organisation with plenty of funds, clients are likely to take many steps to extract as much as they can for even the smallest error.
Most cases will succeed based on principles which means that organisations need to have operative and comprehensive governance procedures to ensure that all aspects of customer and stakeholder interactions are monitored for quality assurance purposes.
How Much Does Professional Indemnity Insurance Cost?
Depending on the size and mix of the organisation, its previous insurance history, its associations, internal and external factors, and much more, the cost of insurance cover will vary. Furthermore, the insurance product can be tailored to your organisation’s requirements. The level of cover, the amount of excess, the inclusions, the special conditions and other considerations all go into determining the premium that you pay.
It is important to understand that whilst insurance presents a periodic cost into the future, it does help you financially and emotionally when you know that your insurance company will help you when you need it.
How to Get Professional Indemnity Insurance in Australia?
Many insurance firms offer professional indemnity insurance. Whilst cost tends to predominate decisions, it is essential that you look at the quality of the service provided by the insurance company. You also need to compare the terms of the insurance coverage and the inclusions to ensure that you are comparing like-for-like policies. It is always advisable to surf the internet, ask colleagues and friends and have discussions with various insurance companies to enable you to gain a better understanding of the product you wish to acquire.
At Carollo Horton, we strive for excellence and provide the best-value insurance packages. Let our dedicated team talk to you about our directors and officer liability insurance products and services.
Contact us to discuss your business and insurance needs. We service Melbourne, Sydney, Brisbane, Adelaide, Perth and all regional areas of Australia. Call 1300 227 655 or submit an online query now to receive a response as soon as possible.